2014 ECONOMIC
AND COMMUNITY
IMPACT REPORT
OF THE UNIVERSITY
OF WASHINGTON
December 2014
2014 ECONOMIC AND COMMUNITY IMPACT REPORT OF THE UNIVERSITY OF WASHINGTON
1
TABLE OF CONTENTS
UNIVERSITY OF WASHINGTON ANNUAL IMPACT ON THE STATE ECONOMY.....................3
INTRODUCTION................................................................................................................................4
PROJECT OVERVIEW.......................................................................................................................4
METHODOLOGY EMPLOYED IN THE ECONOMIC IMPACT STUDY............................................5
UW IS INTEGRAL TO THE STATE’S ECONOMIC SUCCESS........................................................6
UW SUPPORTS JOBS.......................................................................................................................7
UW STRENGTHENS STATE AND LOCAL GOVERNMENTS.........................................................9
UW RESEARCH GENERATES A FAR REACHING IMPACT..........................................................10
C4C INCREASES TECHNOLOGY-DRIVEN PROSPERITY.............................................................15
UW IS A MAJOR CONTRIBUTOR TO WASHINGTON’S INNOVATION ECONOMY..................17
UW BENEFITS THE STATE BEYOND OPERATIONS....................................................................17
UW EDUCATES THE FUTURE WORKFORCE OF WASHINGTON................................17
UW PROVIDES SUPPORT TO THE COMMUNITY...........................................................17
PHILANTHROPY CONTRIBUTES TO THE STRENGTH OF UW.....................................18
UW PROFESSIONAL AND CONTINUING EDUCATION HELPS
ADULT LEARNERS ADVANCE AND PROSPER.............................................................................18
UW ATHLETICS GENERATES IMPACT..........................................................................................18
GENERATING IMPACT THROUGHOUT THE STATE.....................................................................19
UW MEDICINE...................................................................................................................................20
UW BOTHELL....................................................................................................................................22
UW TACOMA.....................................................................................................................................24
APPENDIX A: DEFINITION OF TERMS..........................................................................................26
APPENDIX B: METHODOLOGY.......................................................................................................27
APPENDIX C: PROFILE OF STATE OF WASHINGTON ECONOMY............................................28
APPENDIX D: ECONOMIC IMPACT BY GEOGRAPHY..................................................................29
APPENDIX E: FAQ’S REGARDING ECONOMIC IMPACT ASSESSMENT....................................31
2014 ECONOMIC AND COMMUNITY IMPACT REPORT OF THE UNIVERSITY OF WASHINGTON
2
University of Washington
Annual Impact on the
State Economy
$12.5 billion in total economic
impact generated by the UW
in the state of Washington.
$565.7 million in tax revenue
to state and local governments,
including sales, property, and
business tax payments.
The UW is the
third-largest
nonfederal employer
in the state of
Washington.
The UW supports
79,331 jobs across
the state including
45,330 jobs related
to UW Medicine.
More than 15,000 degrees
conferred in 2013-2014.
74% of alumni stay in the state
of Washington.
Through donations and
volunteerism combined,
UW employees and students
contributed more than
$149 million to local charitable
organizations in 2013-2014.
In 2013-2014, UW Medicine
provided more than $276
million in charitable care
to residents in the state
of Washington.
2014 ECONOMIC AND COMMUNITY IMPACT REPORT OF THE UNIVERSITY OF WASHINGTON
3
EXECUTIVE REPORT
INTRODUCTION
The University of Washington (UW) is a multi-campus university in Seattle, Tacoma, and Bothell, as well as a
world-class academic medical center. The UW has 16 colleges and schools and offers 1,800 undergraduate courses
each quarter. The UW confers more than 15,000 bachelors, masters, doctoral, and professional degrees annually.
Though its primary missions are education, research, and community service, an institution as vast as the UW is
central to the fiscal health and well-being of the state of Washington.
The results presented in this economic impact study are generated on an annual basis. The economic impact
in future years can either be higher or lower, based on the number of students, capital expansion, increases in
external research, and the level of state appropriations. The operations of the University of Washington, the
regional campuses, and UW Medicine generate $12.5 billion in economic impact and sustain 79,331 jobs
throughout the state.
PROJECT OVERVIEW
In May 2014, Tripp Umbach was retained by the
UW to update its 2010 analysis of the economic,
employment, and government revenue impacts of
operations and research of all of its campuses. The
overall economic and fiscal impact that the University
of Washington has on the vitality of the region and
state includes the following elements:
• Business volume impacts (analysis includes
collection of information regarding capital
expenditures, operational expenditures, salary
data, and state and regional business volumes).
• The direct and indirect employment impacts of
the University.
• The government revenue impact of the UW at
the local and state levels.
• Additional impacts to the statewide economy
including: commercialization, charitable giving,
volunteerism, philanthropy, alumni, and athletics.
UW ECONOMIC IMPACT
STUDY OVERVIEW
STUDY PERIOD:
Fiscal Year 2013 - 2014
(FY 14)
THIS STUDY INCLUDES:
UW Seattle, UW Bothell,
and UW Tacoma
STUDY GEOGRAPHY:
State of Washington,
Puget Sound Region,
including Seattle, Bothell,
and Tacoma
METHODOLOGY:
IMPLAN
2014 ECONOMIC AND COMMUNITY IMPACT REPORT OF THE UNIVERSITY OF WASHINGTON
4
METHODOLOGY EMPLOYED IN THE ECONOMIC IMPACT STUDY
This economic impact analysis measures the effect
of direct and indirect/induced business volume
and government revenue impacts for all of the
UW’s operations throughout Washington. The
methodology employed in the calculation of these
impacts is IMPLAN.1 Primary data utilized to conduct
the analysis was collected from the University of
Washington. Data included: capital expenditures,
operational expenditures, jobs, payroll
and benefits, and taxes. The approach taken on this
study was decidedly conservative. However, the
impact findings compare favorably to other top
research universities in the country.
Economic impact begins when an organization
spends money. Studies measuring economic
impact capture the direct economic impact of an
organization’s spending, plus additional indirect and
induced spending in the economy as a result of direct
spending. Economic impact has little to do with
dollars collected by institutions.
Key economic impact findings presented within the
summary include the total current (FY14)2 impact of
the UW’s operations on employment in Washington,
as well as the revenue impact on state and local
governments. Three types of economic impact are
calculated in the study, including: direct, indirect, and
induced.
For more information on the methodology used to
complete this study, see Appendix B.
COMPONENTS OF ECONOMIC IMPACT
Total economic impact measures the dollars that are
generated within Washington due to the presence
of the UW. This includes not only spending on goods
and services from a variety of vendors within the state
and the spending of its faculty, staff, students, and
visitors, but also the business volume generated by
businesses within Washington that benefit from the
UW’s spending. It is important to remember that not all
dollars spent by a university remain in its home state.
Dollars that “leak” out of the state in the form of
purchases from out-of-state vendors are not included
in the UW’s economic impact on the state. The
multipliers utilized in this study are derived from the
IMPLAN software.
DIRECT vs. INDIRECT vs. INDUCED IMPACT
DIRECT
INDIRECT
Investment in Construction
and Expenditures
for Operations
Purchases from Area Suppliers
INDUCED
Household Spending from
Earnings of Direct
and Indirect Expenditures
1. Minnesota IMPLAN Group, Inc. (MIG) is the corporation that is responsible for the production of IMPLAN (IMpact analysis for PLANning) data and software.
IMPLAN is a micro-computer-based, input-output modeling system. With IMPLAN, one can estimate Input-Output models of up to 528 sectors for any region
consisting of one or more counties. IMPLAN includes procedures for generating multipliers and estimating impacts by applying final demand changes to the model.
2. Fiscal Year 2014 represents the period of time from July 1, 2013 to June 30, 2014 (FY14).
2014 ECONOMIC AND COMMUNITY IMPACT REPORT OF THE UNIVERSITY OF WASHINGTON
5
UW IS INTEGRAL TO THE STATE’S ECONOMIC SUCCESS
Operations of the UW directly or indirectly impact
residents throughout Washington, generating $12.5
billion annually in overall economic impact. The
University of Washington affects business volume in
Washington in three ways:
OVERALL ECONOMIC IMPACT OF UW
(IN BILLIONS)
1. Direct expenditures for goods and services,
capital, and pay & benefits by the UW.
$5.7
TOTAL
As a result of expenditures on goods and services by
the UW, its faculty, staff, students, and visitors, the
overall economic impact of University of Washington
operations on the state of Washington in FY14 was
$12.5 billion ($5.7 billion direct impact and $6.8
billion indirect/induced). Included within this impact,
UW Medicine has an overall economic impact of $7.8
billion ($3.8 direct and $4.0 indirect). For every $31
in the state’s economy, $1 is connected to the UW.3
DIRECT
3. Induced spending within the state of Washington
by UW employees, visitors, students, and
employees at UW’s suppliers. The businesses and
individuals that receive direct payments re-spend
this money within the state, thus creating the
need for even more jobs.
INDIRECT/INDUCED
2. Indirect expenditures by suppliers within the state of
Washington to support the operations of the UW.
$6.8
$12.5
Source: Tripp Umbach using IMPLAN results from data obtained through the UW.
The table below shows the top 10 industries in terms of economic output impacted as a result of UW’s operations
in the statewide economy.
TOP 10 SECTORS IN THE WASHINGTON ECONOMY
IMPACTED BY UW OPERATIONS (BY ECONOMIC OUTPUT)
Sector Description
Total Economic Output
Colleges, universities, and professional schools
$3,720,285,077
Private hospitals
$2,229,484,267
Real estate establishments
$884,546,314
Imputed rental activity for owner-occupied dwellings
$482,426,974
Food services and drinking places
$339,871,409
Wholesale trade businesses
$306,191,198
Offices of physicians, dentists, and other health practitioners
$219,118,690
Telecommunications
$204,328,878
Monetary authorities and depository credit intermediation activities
$185,411,560
Other state and local government enterprises
$159,447,611
Source: Tripp Umbach using IMPLAN results from data obtained through the UW.
In FY14, the UW received $253,896,000 in direct operating appropriations from the state of Washington. As a result
of the University’s expenditures and operations throughout Washington, the state realizes a significant return on its
investment. Given the UW’s ability to effectively leverage this state appropriation beyond its fundamental education and
research missions through strategic partnerships and relationships, the return on the state’s investment is much greater.
3. Total state of Washington gross domestic product is $387,184,969,040.
2014 ECONOMIC AND COMMUNITY IMPACT REPORT OF THE UNIVERSITY OF WASHINGTON
6
UW SUPPORTS JOBS
(IN JOBS)
34,668
TOTAL
INDIRECT/INDUCED
The University of Washington directly employed
34,668 people during FY14 (19,862 jobs are UW
Medicine-related). To put this in perspective, the
University of Washington is the third-largest
nonfederal employer in the state of Washington.5
The University of Washington supports thousands
of jobs statewide in virtually every sector of the
Washington economy in areas such as construction,
business and professional services, restaurants
and hotels, information technology, security, and
temporary employment companies. These indirect/
induced jobs (44,663 jobs) support the more than
34,668 jobs held by Washington residents directly
employed by the University.
OVERALL EMPLOYMENT IMPACT OF UW
DIRECT
The University of Washington supports 79,331
jobs in the state of Washington (45,330 jobs
are UW Medicine-related). One out of every
48 jobs in the state is attributable to UW.4
These jobs (both full-time and part-time) include
not only direct employment by the University, but
also indirect and induced jobs created by supply
and equipment vendors, contractors, and laborers
for the construction and renovation of University
facilities, and jobs created in the community at
hotels, restaurants, and retail stores in support of the
University’s workforce and its visitors.
44,663
79,331
Source: Tripp Umbach using IMPLAN results from data obtained through the UW.
ONE OUT OF 48 JOBS
IN THE STATE OF WASHINGTON
IS ATTRIBUTABLE TO THE UW
THE UW SUPPORTS
79,331
JOBS IN THE STATE
OF WASHINGTON
Source: Tripp Umbach using IMPLAN results from data obtained through the UW.
4. IMPLAN Data for total civilian employment in the state of Washington was 3,833,798.
5. Washington Top 50 Employers, 2nd Quarter 2013. Center for Workforce Information & Analysis. 01/22/2014
2014 ECONOMIC AND COMMUNITY IMPACT REPORT OF THE UNIVERSITY OF WASHINGTON
7
The table below shows the top 10 industries impacted by the operations of the University of Washington, in
terms of employment. This represents the number of jobs generated in a multitude of sectors throughout the
Washington economy.
TOP 10 SECTORS IN THE WASHINGTON ECONOMY
IMPACTED BY UW OPERATIONS (BY EMPLOYMENT OUTPUT)
Sector Description
Total Employment (in jobs)
Colleges, universities, and professional schools
21,177
Private hospitals
14,924
Food services and drinking places
4,953
Real estate establishments
4,858
Offices of physicians, dentists, and other health practitioners
1,694
Wholesale trade businesses
1,342
Services to buildings and dwellings
1,037
Other private educational services
1,015
Nursing and residential care facilities
967
Employment services
934
Source: Tripp Umbach using IMPLAN results from data obtained through the UW.
2014 ECONOMIC AND COMMUNITY IMPACT REPORT OF THE UNIVERSITY OF WASHINGTON
8
UW STRENGTHENS STATE AND LOCAL GOVERNMENTS
TOTAL STATE AND LOCAL
TAX REVENUE GENERATED
It is a common misperception that public universities
do not generate tax revenue. State and local
government revenues attributable to the presence
of the University of Washington totaled $565.7
million ($152.5 million direct) in FY14. Through its
local spending, as well as direct and indirect support
of jobs, the presence of the University stabilizes and
strengthens the local and statewide tax base.
The UW is an integral part of the state’s economy
– generating revenue, jobs, and spending. Specific
taxes, generated at the state and local level, are
presented in the table below.
$152.5
TOTAL
DIRECT
INDIRECT/INDUCED
(IN MILLIONS)
$413.2
$565.7
Source: Tripp Umbach using IMPLAN results from data obtained through the UW.
STATE AND LOCAL TAXES GENERATED BY UW OPERATIONS
Employee
Compensation
Description
Tax on Production
and Imports
Households
Dividends
Corporations
$653,390
Social Ins Tax- Employee Contribution
$3,469,700
Social Ins Tax- Employer Contribution
$6,821,784
Tax on Production and Imports: Sales Tax
$333,403,461
Tax on Production and Imports: Property Tax
$160,104,323
Tax on Production and Imports: Motor Vehicle Lic
$4,039,334
Tax on Production and Imports: Severance Tax
$695,139
Tax on Production and Imports: Other Taxes
$26,453,556
Tax on Production and Imports: S/L NonTaxes
$4,558,849
Corporate Profits Tax
Personal Tax: Income Tax
Personal Tax: NonTaxes (Fines- Fees)
$14,182,385
Personal Tax: Motor Vehicle License
$6,258,513
Personal Tax: Property Taxes
$2,316,670
Personal Tax: Other Tax (Fish/Hunt)
$2,715,321
TOTAL STATE AND LOCAL TAX
$10,291,484
$529,254,662
$25,472,889
$653,390
Source: Tripp Umbach using IMPLAN results from data obtained through the UW.
2014 ECONOMIC AND COMMUNITY IMPACT REPORT OF THE UNIVERSITY OF WASHINGTON
9
UW RESEARCH GENERATES A FAR REACHING IMPACT
Research is foundational to the UW’s mission. The
University’s track record of receiving competitive
federal research funding has been critical for its ability
to invest in targeted initiatives and research to stay
globally competitive. The UW has tripled its research
funding over the last 20 years, and in FY14, received
an astonishing $1.385 billion in sponsored research
funds. From 1974-2009, UW received more federal
research funding than any other U.S. public university,
and since 2009, has been in the top two nationally.
This impressive research funding has a direct and
lasting impact on the educational mission. In FY14,
it is estimated that approximately $250 million from
research funding supported experiential learning
for the UW students. Thousands of students each
year gain hands-on experience in research projects,
enriching their education and making them even
more attractive to employers.
There are over 285 specialized research centers at
UW and over 20 National Institutes of Health
Research Cores and Centers of Excellence, including
the Institute for Translational Health Sciences, one
of 60 NIH-funded national Clinical and Translational
Sciences Awards (CTSA).
AWARDS BY UNIT
FISCAL YEAR 2014
Unit
2014
School of Medicine
$750,941,985
College of the Environment
$115,329,001
College of Engineering
$113,301,093
School of Public Health
$95,119,582
College of Arts and Sciences
$81,365,728
Office of Research
$62,958,192
Health Sciences Administration
$42,826,858
College of Education
$24,029,769
School of Pharmacy
$18,071,022
School of Social Work
$14,379,375
School of Nursing
$14,294,769
Dean of Libraries
$8,692,211
Office of Minority Affairs & Diversity
$7,449,317
Graduate School
$6,673,210
UW Bothell
$6,641,423
UW Finance and Facilities
$4,000,760
School of Dentistry
$3,960,006
The Information School
$3,405,506
Evans School of Public Affairs
$2,762,217
UW Tacoma
$2,762,066
School of Law
$1,604,092
College of Built Environments
$1,491,983
Foster Business School
$1,451,363
UW Information Technology
$1,000,000
Medical Centers
$496,769
Undergraduate Academic Affairs
$280,609
Center for Commercialization
$100,000
UW Student Life
$65,969
Vice President for Development
$25,000
GRAND TOTAL
$1,385,479,884
Source: University of Washington
2014 ECONOMIC AND COMMUNITY IMPACT REPORT OF THE UNIVERSITY OF WASHINGTON
10
Leading centers include:
• Institute for Protein Design
• Center for Integrative Neuroscience
• West Coast Poverty Center
• Center for Advanced Materials in Transport
Aircraft Structures (AMTAS)
• Molecular Engineering and Sciences Institute
• Center for Sensimotor Neural Engineering
• Center for Enabling New Technologies Through
Catalysis
• Learning in Informal and Formal Environments
Center
• Polar Science Center
• Center for Information Assurance & Cybersecurity
• Center for Law in Science and Global Health
• Center for AIDS Research (CFAR)
• Institute for Stem Cell and Regenerative Medicine
(ISCRM)
• Center for Intracellular Delivery of Biologics (CIDB)
• Pacific Northwest Center for Construction
Research and Education
• Cleary Community for 21st Century Youth
Literacy
• Center for Emerging and Re-emerging Infectious
Diseases
• Pacific Northwest Udall Parkinson’s Disease Center
(PANUC)
• Centers for Comparative and Health Systems
Effectiveness
• Pharmacogenomics Research Network (PGRN)
• UW Global Center for Integrated Health of
Women, Adolescents, and Children
• Institute for Learning and Brain Sciences
• Resuscitation Outcomes Consortium (ROC)
• Institute for Nuclear Theory (INT)
• Center for Experimental Nuclear Physics and
Astrophysics (CENPA)
• Institute for Health Metrics and Evaluation (IHME)
• Pacific Northwest Cooperative Ecosystems Study
Center
• Indigenous Wellness Research Institute
• Harborview Injury Prevention and Research Center
• Comparative Law and Societies Studies Center
• Diabetes and Obesity Center of Excellence
Research at UW Medicine occurs across 30 academic departments and throughout numerous centers and
institutes. The UW Medicine research community has access to comprehensive instrumentation, facilities, and
services throughout the School’s research sites and across the academic campus. The UW School of Medicine also
provides advanced scientific training toward Ph.D. degrees in biomedical research in an outstanding resource-rich,
collaborative environment dedicated to basic and translational research. UW Medicine, together with all of its
affiliates, received more than $557.7 million in NIH research funds.
These sponsored research dollars enter the Washington economy from a wide variety of agencies and
organizations, including the National Institutes of Health and the National Science Foundation. This research
funding is generated by a wide variety of departments and colleges throughout the University system.
2014 ECONOMIC AND COMMUNITY IMPACT REPORT OF THE UNIVERSITY OF WASHINGTON
11
The UW’s competitive strength is due in part to
its support of technology that enables research
collaboration within the UW community and its
partners around the world. UW’s goals are to provide
students with the tools they need for academic
success and faculty with the collaborative tools
and networks necessary to support research and
sophisticated teaching methods.
OVERALL ECONOMIC IMPACT
OF THE UW RESEARCH
(IN BILLIONS)
TOTAL
DIRECT
The University’s research operations make tangible
and quantifiable economic contributions. Along with
creating jobs for research staff and support personnel,
UW scientists are contributing to new product
development and technology commercialization.
Knowledge and technology transfers have helped
to start commercial ventures that promote
entrepreneurship, economic development, and
job creation.
INDIRECT/INDUCED
The UW’s research expenditures totaled $1.27 billion
during FY14 resulting in an overall economic impact
of $2.4 billion utilizing IMPLAN to calculate the total
impact of research expenditures.
$1.3
$1.1
$2.4
Source: Tripp Umbach using IMPLAN results from data obtained through the UW.
In FY14, the University of Washington received $556.2 million in National Institutes of Health (NIH) funding.
If all UW Medicine affiliates are included, the total amount of NIH funding for that year grows to $719.9 million.6
The University is the second largest of all U.S. university recipients (first among public universities) of federal science
and engineering research and development obligations, according to the National Science Foundation’s latest
published information (2014 figures).
UW MARKETSHARE OF FEDERAL RESEARCH FUNDING
4.00
3.50
MARKETSHARE %
The figures to the right
illustrate the UW’s
continued ability to secure
sponsored funding for
research. As competition
for research dollars grows
and the funding decreases,
the UW is able to maintain
a level of research dollar
attraction that is the
aspiration of universities
throughout the world. In a
dwindling pool of federal
research dollars, the UW is
able to maintain a 3.42%
market share of all federal
research dollars awarded.
3.72
3.32
3.00
2.50
2.86
2.93
2.77 2.81
2.84
2.78 2.83
2.98 2.98
2.69
2.57
2.63
2.74
2.81
2.94
3.03
3.23
3.34
(3.42)
2.89 2.91
2.00
1.50
1.00
0.50
0.00
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
YEAR
Originating sponsor funds
Adjusted to exclude financial aid awards to institution
Source: University of Washington
Percent Marketshare
Based on National Science Foundation, National Center for Science and
Engineering Statistics: Federal Science and Engineering Support to
Universities, Colleges, and Nonprofit Institutions: FY 2009. Detailed Statistical
Tables NSF 13-303. http://www.nsf.gov/statistics/nsf13303/ and Federal Funds
for Research and Development: Fiscal Years 2011-13, Detailed Statisticsal
Tables. 16-18. 2014 estimate based on AAAS funding trends report.
6. Source: University of Washington
2014 ECONOMIC AND COMMUNITY IMPACT REPORT OF THE UNIVERSITY OF WASHINGTON
12
Since 2010, research funding at UW has been over $1.2 billion. The graphic below shows the nominal research
amount awarded to the UW by state fiscal year.
2010
$1.42 B
INCLUDES
$191 M ARRA
2011
$1.51 B
2012
$1.47 B
INCLUDES
$158 M ARRA
INCLUDES
$7 M ARRA
NOMINAL RESEARCH AWARD AMOUNT
NOMINAL RESEARCH AWARD AMOUNT
NOMINAL RESEARCH AWARD AMOUNT
NOMINAL RESEARCH AWARD AMOUNT
NOMINAL RESEARCH AWARD AMOUNT
AWARDS FISCAL YEARS 2010-2014
(STATE FISCAL YEAR)
2013
$1.24 B
2014
$1.385 B
Source: University of Washington
UW continues to be a leader in receiving sponsored research dollars from the NSF and NIH securing $556.2 million
from the NIH and $130.2 million from the NSF in 2014.
2010
$664.9 M
$175.7 M
2011
$667.3 M
$138.5 M
2012
$596.6 M
$153.9 M
2013
$475.9 M
$144.1 M
NATIONAL SCIENCE FOUNDATION
NATIONAL INSTITUTES OF HEALTH
NATIONAL SCIENCE FOUNDATION
NATIONAL INSTITUTES OF HEALTH
NATIONAL SCIENCE FOUNDATION
NATIONAL INSTITUTES OF HEALTH
NATIONAL SCIENCE FOUNDATION
NATIONAL INSTITUTES OF HEALTH
NATIONAL SCIENCE FOUNDATION
NATIONAL INSTITUTES OF HEALTH
NIH AND NSF FUNDING FISCAL YEARS 2010-2014
(ORIGINATING)
2014
$556.2 M
$130.2 M
Source: University of Washington
2014 ECONOMIC AND COMMUNITY IMPACT REPORT OF THE UNIVERSITY OF WASHINGTON
13
UW RESEARCH CREATES AND SUSTAINS
HIGH-QUALITY JOBS
UW RESEARCH GENERATES STATE
AND LOCAL TAX REVENUE
In FY14, the UW’s operational and capital
expenditures for sponsored research and other
sponsored programs supported 14,427 jobs.
These research employment numbers represent
18.2% of the UW’s total employment impact of
79,331 jobs.
UW Research generates significant state and
local tax revenue. In FY14, UW Research generated
$75.2 million in total government revenue
($12.0 million direct).
(IN MILLIONS)
$12.0
TOTAL
INDIRECT/INDUCED
By maintaining and growing its strong faculty base,
the UW will continue to attract, and consequently
spend, increasingly higher levels of research dollars,
and the number of jobs supported will see similar
growth. With continued high levels of research
funding and consequent expenditures, the UW will
remain a source of support for thousands of local jobs
based on its research funding alone.
TOTAL STATE AND LOCAL TAX
REVENUE GENERATED BY UW RESEARCH
DIRECT
These jobs include not only UW direct employment of
research professionals, but also indirect jobs created
by supply and equipment vendors, contractors,
and laborers for the construction and renovation of
laboratory facilities, administrators and managers who
support the research infrastructure, and jobs created
in the community by the disposable income of the
scientific workforce.
$63.2
$75.2
Source: Tripp Umbach using IMPLAN results from data obtained through the UW.
2014 ECONOMIC AND COMMUNITY IMPACT REPORT OF THE UNIVERSITY OF WASHINGTON
14
C4C INCREASES TECHNOLOGY-DRIVEN PROSPERITY
As the U.S.’s number one federally funded public
research university, the UW is producing innovations
that have the power to change the world — from
biofuel alternatives, to more effective treatments for
Alzheimer’s disease and brain cancer, to purification
technology for drinking water in the developing
world. The University of Washington’s Center for
Commercialization (C4C) is committed to getting
these research outcomes into products, services,
therapies, diagnostics, and cures to where they can
impact millions of people.
C4C is one of the top five university technology
transfer offices in the nation. C4C is committed to
developing and commercializing innovations that
emerge from the UW’s diverse research endeavors.
Such commercialization activities not only create
a more “academically entrepreneurial” culture on
campus, they also contribute much to the state’s
economy and its probability for increased technologydriven prosperity.
Since 2008, through C4C, the UW has developed an
extensive ecosystem for technology entrepreneurship.
Entrepreneurial UW researchers now have access to
highly integrated resources that include:
• gap funding for developing early customers and
product prototypes;
• entrepreneurs-in-residence who work as integral
parts of the commercialization teams;
• volunteer boards from the private sector,
advising on team formation and on preparing for
investment;
• startup incubation facilities;
• angel investors through forums like WINGS
medical technology angels, the Alliance of Angels,
Element 8, and the W Fund; and
• non-dilutive funding through federal SBIR and
STTR grants and other grant programs.
Key indicators of the UW’s success in technology
commercialization are tabulated below. The UW
reports annually to the Association of University
Technology Managers (AUTM), which summarizes
the data for 161 universities and research institutions.
This data is published with approximately a one-year
delay; the FY13 AUTM data was received in Sept
2014. For the national rankings, the UW excludes the
University of California and the University of Texas,
which report their data as systems of multiple large
campuses. The UW reports to AUTM jointly with the
Washington Research Foundation.
UW/WRF FY13
FY13 ranking per
AUTM
UW FY14
Total licenses and options executed
260
#1
264
Total active licenses
1,272
#3
1,243
Number of technologies included in active licenses
681
#1
603
Technology startups
17
#3
18
Source: University of Washington
2014 ECONOMIC AND COMMUNITY IMPACT REPORT OF THE UNIVERSITY OF WASHINGTON
15
The UW is among the top three universities in the nation for technology startups, for all licenses and options
executed, and for the number (and variety) of technologies made available in licenses. The 260 license and option
agreements for FY13 include the 17 startups, along with exclusive licenses to existing companies and broad
nonexclusive licensing programs.
Innovation is important; commercially relevant innovation is vital. Through C4C’s relationships with industry, they
strive to position UW researchers to work on important problems building an innovation pipeline with impact.
COMMERCIALIZATION AGREEMENTS
COMPLETED
256
264
US PATENT APPLICATIONS FILED
478
FY 13-14
FY 12-13
FY 13-14
FY 12-13
FY 12-13
FY 13-14
UW COMMERCIALIZATION ACTIVITIES
(FY 12-13 AND FY 13-14)
467
INNOVATIONS DISCLOSED
411
421
Source: University of Washington
2014 ECONOMIC AND COMMUNITY IMPACT REPORT OF THE UNIVERSITY OF WASHINGTON
16
UW IS A MAJOR CONTRIBUTOR TO WASHINGTON’S INNOVATION ECONOMY
The UW’s faculty, students, and research play a unique role in sustaining Washington’s technology and health
science sectors. These sectors evolve rapidly, and existing companies and startups alike must continually innovate
in order to grow. the UW is the Northwest’s primary source for world-class talent, expertise, and inventions in
technology and health science.
INDICATORS OF UW CONTRIBUTION TO
TECHNOLOGY AND HEALTH SCIENCE SECTORS
Technology startups per year (FY14)
18
(Top 5 in the U.S.)
100
Technology companies in operation
Companies acquired (1993-2014)
27
SBIR/STTR grants (2010-2014)
$27,000,000
Source: University of Washington
UW BENEFITS THE STATE BEYOND OPERATIONS
The UW’s total impact on the state of Washington goes beyond its annual operational expenditures. Economic
impact studies often capture only the impact that can be assigned a quantitative number, but the qualitative value
and impact of the University goes far beyond its annual multi-billion dollar economic impact. Through its academic
programs, the UW is helping to grow the state by educating the highly skilled workforce that will be needed to
compete in a global economy, providing the next generation of innovators with a firm foundation upon which to
grow their own ideas, and helping to build the next generation of scholars. Moreover, the UW provides the larger
community with access to faculty experts and adds richness and diversity to the region’s cultural offerings.
UW EDUCATES THE FUTURE WORKFORCE
OF WASHINGTON
UW PROVIDES SUPPORT TO THE
COMMUNITY
The UW educates the workforce that Washington
needs to successfully compete in the 21st Century
global economy. Graduates from the University of
Washington are essential to meeting the state’s human
capital and workforce needs. In 2013-2014, the UW
conferred more than 15,000 degrees. About 74% of
graduates will stay in Washington and contribute to
the state economy.
UW students have a zeal for community service and
activism. In 2012-13, more than 7,000 students
engaged in academic service-learning, volunteering a
staggering 465,000 hours with organizations such as
Girls on the Run and the National Alliance on Mental
Illness. This is the equivalent of 53 years of service. In
addition, UW is consistently one of the top volunteer
producing universities for the Peace Corps, ranking
second in 2013.7
The contributions of UW graduates are critically
important to the economic vitality of the state. The
University’s alumni number more than 454,000.
While UW grads tend to have an affinity for the
Northwest, Huskies can be found across the United
States and around the world. the UW is a global talent
magnet, attracting top students in a wide range of
disciplines —the majority of whom stay in Washington
upon graduation. UW Alumni (undergraduate,
graduate, and professional) remaining in Washington
contribute an additional $1.5 billion annually to the
state’s economy based upon their additional earning
power as graduates of the UW ($8,253 more each year
when compared to graduates from other universities).
It is estimated that UW employees and students
generate more than $425 million annually in
charitable donations and volunteer services.8 These
benefits are in addition to the $12.5 billion annual
impact and include the following:
• Through donations and volunteerism combined,
UW employees and students contributed more
than $149 million to local charitable organizations
in 2013-2014.
• In 2013-2014, UW Medicine provided more than
$276 million in charitable care to residents of the
state of Washington.
7. http://www.peacecorps.gov/media/forpress/press/2327/
8. Primary data collection via survey research where faculty, staff, and students provide estimates on spending patterns, including information on the number
of volunteer hours and charitable donations in which they provide. A conservative assumption of $22.14 per hour was used to calculate the value of volunteer
services. This amount was calculated independently by the Points of Light Foundation.
2014 ECONOMIC AND COMMUNITY IMPACT REPORT OF THE UNIVERSITY OF WASHINGTON
17
PHILANTHROPY CONTRIBUTES TO THE
STRENGTH OF UW
The impact of philanthropic giving to the UW as
a result of the dollars expended within the state
of Washington to support faculty, staff, students,
programs, and facilities is significant. Private support
makes the difference between a university being
good and being excellent. Gifts to the UW enrich
student educational opportunities, support groundbreaking research, and strengthen programs that
benefit the community and world at large. Last year,
the UW expended $576 million as a result of its
philanthropy — $482 million received from donors,
and $93 million in endowment distributions. This
impressive amount of support allows the University to
further advance its mission and support the broader
community.
UW PROFESSIONAL AND CONTINUING
EDUCATION HELPS ADULT LEARNERS
ADVANCE AND PROSPER
With hundreds of programs designed for adult
learners, UW Professional and Continuing Education
(UW PCE) provides a multitude of opportunities for
residents of the state of Washington to advance
programs, courses, conferences, and executivelevel seminars to many audiences in Seattle and
throughout the state. Providing programs in easyto-access evening, weekend, and online formats,
UW PCE serves professionals in all industry sectors,
people who want to enter emerging careers, nonEnglish speakers, adults over 50, and those who
need new skills to take advantage of rapidly shifting
economic opportunities. More than 48,000 people
took advantage of the 9,696 courses offered by UW
Professional and Continuing Education in 2013-2014.
UW ATHLETICS GENERATES IMPACT
Sponsoring 22 sports programs, the University of
Washington department of intercollegiate athletics
provides competition opportunities for over 650
student-athletes. The Huskies are known for a
commitment to success both in the classroom and on
the field of play, and have boasted student-athlete
Graduation Success Rates among the highest in the
Pac-12. UW Athletics completed a privately financed
$281 million renovation of Husky Stadium, known
throughout the country as “the Greatest Setting in
College Football,” which sits on Lake Washington and
attracts thousands of visitors annually.
UW Athletics generates a significant impact for the
state of Washington. In FY14, the total economic
impact of UW Athletics operations and visitors was
$225.9 million ($86.8 million direct and $139.1
million indirect/induced). This impact is supported by
the direct, in-state spending on operations by UW
Athletics ($86.8 million) and out-of-state direct visitor
spending ($27.6 million direct with a total impact of
visitor spending of $46.2 million). UW Athletics and
out-of-state visitors to the game support 1,384 jobs
in the state.
The annual economic impact of UW PCE on the state
of Washington was $179.6 million ($84.6 million
direct). The total employment impact of this program
is 2,365 jobs (1,778 direct jobs). The state and local
government revenue impact was $8.3 million ($2.8
million direct).
2014 ECONOMIC AND COMMUNITY IMPACT REPORT OF THE UNIVERSITY OF WASHINGTON
18
GENERATING IMPACT THROUGHOUT THE STATE
The University of Washington and its regional campuses have a significant economic impact across Washington.
Economic impact analysis was completed for the University of Washington overall as well as for UW Bothell, UW
Tacoma, and UW Medicine.
UW ECONOMIC IMPACT ON THE STATE
OF WASHINGTON
Direct
Indirect/Induced
Total
UW Seattle
$5.6 billion
$6.5 billion
$12.1 billion
UW Bothell
$82.7 million
$148.9 million
$231.6 million
UW Tacoma
$70.2 million
$141.5 million
$211.7 million
TOTAL
$5.7 billion
$6.8 billion
$12.5 billion
UW Medicine
$3.8 billion
$4.0 billion
$7.8 billion
Source: Tripp Umbach using IMPLAN results from data obtained through the UW.
UW EMPLOYMENT IMPACT ON THE STATE
OF WASHINGTON (IN JOBS)
Direct
Indirect/Induced
Total
UW Seattle
33,528
42,498
76,026
UW Bothell
599
1,098
1,697
UW Tacoma
541
1,067
1,608
TOTAL
34,668
44,663
79,331
UW Medicine
19,862
25,468
45,330
Source: Tripp Umbach using IMPLAN results from data obtained through the UW.
UW STATE AND LOCAL GOVERNMENT IMPACT
ON THE STATE OF WASHINGTON
Direct
Indirect/Induced
Total
UW Seattle
$147.5 million
$394.2 million
$541.7 million
UW Bothell
$2.7 million
$9.6 million
$12.3 million
UW Tacoma
$2.3 million
$9.3 million
$11.6 million
TOTAL
$152.5 million
$413.2 million
$565.7 million
UW Medicine
$88.0 million
$238.1 million
$326.1 million
Source: Tripp Umbach using IMPLAN results from data obtained through the UW.
2014 ECONOMIC AND COMMUNITY IMPACT REPORT OF THE UNIVERSITY OF WASHINGTON
19
UW MEDICINE
INTRODUCTION
Founded in 1946, the University of Washington School of
Medicine (UWSOM) is recognized for excellence in training
primary-care physicians and for advancing medical knowledge
through scientific research. UWSOM is nationally recognized for
a commitment to community service through volunteer activities
of students, staff, faculty, and alumni. UWSOM is a regional
medical school serving the states of Washington, Wyoming,
Alaska, Montana, and Idaho – the WWAMI program. UWSOM’s
mission is to improve the health of the public by advancing
medical knowledge, providing outstanding primary and specialty
care to the people of the region, and preparing tomorrow’s
physicians, scientists, and other health professionals.
UWSOM owns or operates Harborview Medical Center,
Northwest Hospital & Medical Center, Valley Medical Center,
University of Washington Medical Center, a network of nine
UW Neighborhood Clinics that provide primary care and
secondary care, the physician practice UW Physicians, the UW
School of Medicine, and Airlift Northwest. In addition, UWSOM
shares the ownership and governance of Children’s University
Medical Group and Seattle Cancer Care Alliance, a partnership
among UW Medicine, Fred Hutchison Cancer Research
Center, and Seattle Children’s. UWSOM faculty includes three
living Nobel Prize winners (five in UW Medicine history), 35
Institute of Medicine members, 32 National Academy of
Sciences members, and 13 Howard Hughes Medical Institute
investigators. UWSOM has been ranked as one of the top
primary-care medical schools in the country since 1994, and is
second only to Harvard in the amount of NIH-funded research
conducted by its faculty. In addition, UWSOM programs are
ranked among the best in the country in the 2013 rankings by
U.S. News & World Report.
•
•
•
•
•
•
•
Family medicine (No. 1 for 22 consecutive years)
Rural medicine (No. 1 for 22 consecutive years)
AIDS
Geriatrics
Pediatrics
Bioengineering
Internal medicine
UWSOM faculty members are leaders in research related
to the biomolecular structure of proteins. Understanding
protein complexes may lead to treatment and prevention of
devastating diseases. UW scientists are studying dystrophin, a
protein necessary for muscle health, in the search for muscular
dystrophy treatments. Other scientists are studying the
structural genomics of protozoa that are pathogens for such
diseases as sleeping sickness, leishmaniasis, and malaria, which
result in many deaths worldwide.
UW MEDICINE
SUPPORTS THE
STATE ECONOMY
OVERALL ECONOMIC
IMPACT OF UW MEDICINE
ACROSS THE STATE WAS
$7.8 BILLION.
$7.8
BILLION
UW MEDICINE
DIRECTLY OR INDIRECTLY
SUPPORTED 45,330 JOBS
THROUGHOUT THE
STATE OF WASHINGTON.
45,330
JOBS
UW MEDICINE
GENERATED APPROXIMATELY
$326.1 MILLION IN STATE
AND LOCAL GOVERNMENT
REVENUES FOR THE STATE
OF WASHINGTON.
$326.1
MILLION
Source: Tripp Umbach using IMPLAN results from data obtained through the UW.
2014 ECONOMIC AND COMMUNITY IMPACT REPORT OF THE UNIVERSITY OF WASHINGTON 20
ECONOMIC IMPACT
$3.8
DIRECT
$5.7
UW MEDICINE AND AFFILIATES
UW MEDICINE
UW MEDICINE AND AFFILIATES
UW MEDICINE
UW MEDICINE AND AFFILIATES
UW MEDICINE
In FY14, UW Medicine had an economic
impact on the state of Washington of
$7.8 billion ($3.8 billion direct and $4.0
billion indirect and induced). When all
the major affiliates are included, the
economic impact reaches $11.1 billion
($5.7 billion direct and $5.4 billion
indirect and induced).
OVERALL ECONOMIC IMPACT OF UW MEDICINE
(IN BILLIONS)
INDIRECT/INDUCED
$4.0
$5.4
$7.8
TOTAL
$11.1
Source: Tripp Umbach using IMPLAN results from data obtained through the UW.
EMPLOYMENT IMPACT
DIRECT
19,862
27,430
INDIRECT/INDUCED
25,468
35,135
UW MEDICINE AND AFFILIATES
UW MEDICINE
UW MEDICINE AND AFFILIATES
UW MEDICINE
UW MEDICINE AND AFFILIATES
UW MEDICINE
The total employment impact of UW
Medicine in FY14 was 45,330 jobs
(19,862 jobs direct and 25,468
indirect/induced jobs). The total
employment impact of UW Medicine
and all affiliates was 62,565 jobs
(27,430 jobs direct and 35,135 indirect
and induced).
UW MEDICINE OVERALL EMPLOYMENT IMPACT
(IN JOBS)
TOTAL
45,330
62,565
Source: Tripp Umbach using IMPLAN results from data obtained through the UW.
DIRECT
$88.0
$113.2
INDIRECT/INDUCED
$238.1
$326.6
UW MEDICINE AND AFFILIATES
UW MEDICINE
UW MEDICINE AND AFFILIATES
UW MEDICINE
UW MEDICINE
UW Medicine operations generate
$326.1 million ($88.0 million direct) per
year in state and local tax revenue. UW
Medicine and affiliates generate $439.8
million ($113.2 million direct per year in
state and local tax revenue.
UW MEDICINE OVERALL GOVERNMENT REVENUE IMPACT
(IN MILLIONS)
UW MEDICINE AND AFFILIATES
GOVERNMENT REVENUE IMPACT
TOTAL
$326.1
$439.8
Source: Tripp Umbach using IMPLAN results from data obtained through the UW.
2014 ECONOMIC AND COMMUNITY IMPACT REPORT OF THE UNIVERSITY OF WASHINGTON
21
UW BOTHELL
INTRODUCTION
The University of Washington Bothell opens the door
to an internationally and nationally ranked university
experience that provides access to excellence for
promising students from all backgrounds. The faculty
cultivate big ideas in small settings that encourage
new discoveries, interaction and critical thinking. The
campus is located in the greater Seattle area, home to
some of the world’s most iconic and entrepreneurial
corporations, foundations and arts organizations.
Founded in 1990, UW Bothell is located on a
128-acre campus with nearly 5,000 students enrolled
in 45 undergraduate and graduate degrees. UW
Bothell emphasizes high-impact learning across
subject matters. Upon graduation, students are
prepared to succeed in dynamic and ever-changing
workplaces and communities.
The university takes advantage of the Puget Sound
regions’ capacity for innovation and discovery by
connecting students to career-building and life-long
learning experiences. Nine out of 10 UW Bothell
graduates live and work in the state of Washington.
They become regional leaders in high demand
fields such as health care, technology, education,
engineering, business and more.
UW Bothell is the fastest-growing public institution
in the state of Washington and the sixth fastest in
the nation. It is also the largest of the state’s branch
campuses. UW Bothell serves the needs of the state
of Washington, delivering educational excellence,
access, and affordability: Ninety percent of the
student body is from the state of Washington, and
51 percent of first-year students are first-generation
college attendees. More than four out of 10 students
are people of color and from diverse backgrounds.
UW BOTHELL
SUPPORTS THE
STATE ECONOMY
OVERALL ECONOMIC
IMPACT OF UW BOTHELL
ACROSS THE STATE WAS
$231.6 MILLION.
$231.6
MILLION
UW BOTHELL
DIRECTLY OR INDIRECTLY
SUPPORTED 1,697 JOBS
THROUGHOUT THE
STATE OF WASHINGTON.
1,697
JOBS
UW BOTHELL
GENERATED APPROXIMATELY
$12.3 MILLION IN STATE
AND LOCAL GOVERNMENT
REVENUES FOR THE STATE
OF WASHINGTON.
$12.3
MILLION
Source: Tripp Umbach using IMPLAN results from data obtained through the UW.
2014 ECONOMIC AND COMMUNITY IMPACT REPORT OF THE UNIVERSITY OF WASHINGTON 22
ECONOMIC IMPACT
OVERALL ECONOMIC IMPACT
OF UW BOTHELL
The overall economic impact of UW Bothell
operations on Washington in FY14 was $231.6
($82.7 million direct impact and $148.9 million
indirect and induced impact).
$82.7
TOTAL
DIRECT
INDIRECT/INDUCED
(IN MILLIONS)
$148.9
$231.6
Source: Tripp Umbach using IMPLAN results from data obtained through the UW.
EMPLOYMENT IMPACT
OVERALL EMPLOYMENT IMPACT
OF UW BOTHELL
The total employment impact of UW Bothell on
the state was 1,697 jobs (599 direct jobs).
599
TOTAL
DIRECT
INDIRECT/INDUCED
(IN JOBS)
1,098
1,697
Source: Tripp Umbach using IMPLAN results from data obtained through the UW.
(IN MILLIONS)
$2.7
TOTAL
DIRECT
UW Bothell operations generate $12.3 million
($2.7 direct) per year in state and local tax
revenue.
TOTAL STATE AND LOCAL TAX
REVENUE GENERATED BY UW BOTHELL
INDIRECT/INDUCED
GOVERNMENT REVENUE IMPACT
$9.6
$12.3
Source: Tripp Umbach using IMPLAN results from data obtained through the UW.
2014 ECONOMIC AND COMMUNITY IMPACT REPORT OF THE UNIVERSITY OF WASHINGTON 23
UW TACOMA
INTRODUCTION
Founded in 1990, UW Tacoma is an urban-serving
university providing access to students in a way that
transforms families and communities. UW Tacoma
strives to impact and inform economic development
through community-engaged students and faculty.
UW Tacoma is closely linked with Tacoma and the
South Puget Sound and is a member of the Coalition
of Urban Serving Universities, a network of public,
urban, research universities committed to creating an
educated workforce, building strong communities,
and improving the health of diverse populations.
With more than 4,300 students enrolled in 30
undergraduate programs and 16 post-baccalaureate
and graduate areas, UW Tacoma provides area
students with the highest levels of education. UW
Tacoma’s diverse student body includes a broad range
of ethnic and family backgrounds, ages, interests,
and experience. More than 80% of students transfer
to UW Tacoma from one of the many community
colleges in the area or from other universities.
Freshmen from high schools all over the Puget Sound
and beyond make up a growing portion of students.
Added to the mix are students who are returning to
school after years away, military personnel and their
families, and professionals working on new career
goals.
At UW Tacoma, students learn in small classes,
getting to know their faculty while participating in
research and service projects. First-year students
complete an innovative core curriculum, which blends
different fields of study into interdisciplinary classes.
Courses might mix art and ecology, or business
and social science. The result is a rich learning
environment where students are encouraged to
challenge themselves.
UW Tacoma is a partner in the community and
encourages its students and faculty to participate
in the community through research and economic
development activities.
UW TACOMA
SUPPORTS THE
STATE ECONOMY
OVERALL ECONOMIC
IMPACT OF UW TACOMA
ACROSS THE STATE WAS
$211.7 MILLION.
$211.7
MILLION
UW TACOMA
DIRECTLY OR INDIRECTLY
SUPPORTED 1,608 JOBS
THROUGHOUT THE
STATE OF WASHINGTON.
1,608
JOBS
UW TACOMA
GENERATED APPROXIMATELY
$11.6 MILLION IN STATE
AND LOCAL GOVERNMENT
REVENUES FOR THE STATE
OF WASHINGTON.
$11.6
MILLION
Source: Tripp Umbach using IMPLAN results from data obtained through the UW.
2014 ECONOMIC AND COMMUNITY IMPACT REPORT OF THE UNIVERSITY OF WASHINGTON 24
ECONOMIC IMPACT
OVERALL ECONOMIC IMPACT
OF UW TACOMA
The overall economic impact of UW Tacoma
operations on the state in FY14 was 211.7
million ($70.2 million direct impact and $141.5
million indirect and induced).
$70.2
TOTAL
DIRECT
INDIRECT/INDUCED
(IN MILLIONS)
$141.5
$211.7
Source: Tripp Umbach using IMPLAN results from data obtained through the UW.
EMPLOYMENT IMPACT
OVERALL EMPLOYMENT IMPACT
OF UW TACOMA
The total employment impact of UW Tacoma
operations in Washington is 1,608 jobs (541
direct jobs and 1,067 indirect and induced
jobs).
541
TOTAL
DIRECT
INDIRECT/INDUCED
(IN JOBS)
1,067
1,608
Source: Tripp Umbach using IMPLAN results from data obtained through the UW.
(IN MILLIONS)
$2.3
TOTAL
DIRECT
UW Tacoma operations generate $11.6 million
($2.3 million direct) per year in state and local
tax revenue.
TOTAL STATE AND LOCAL TAX
REVENUE GENERATED BY UW TACOMA
INDIRECT/INDUCED
GOVERNMENT REVENUE IMPACT
$9.3
$11.6
Source: Tripp Umbach using IMPLAN results from data obtained through the UW.
2014 ECONOMIC AND COMMUNITY IMPACT REPORT OF THE UNIVERSITY OF WASHINGTON 25
APPENDIX A: DEFINITION OF TERMS
STUDY YEAR
Fiscal Year 2013-2014 (FY 13-14)
July 1, 2013 – June 30, 2014
TOTAL ECONOMIC IMPACT
The total economic impact of an institution
includes both the direct impact and the
indirect impact generated in the economy as
a result of the institution.
DIRECT ECONOMIC IMPACT
Direct impact includes items such as
institutional spending, employee spending
and spending by visitors to the institution.
INDIRECT AND INDUCED
ECONOMIC IMPACT
Indirect impact, also known as the multiplier
effect, includes the respending of dollars
within the local economy by
vendors/suppliers and households.
MULTIPLIER EFFECT
The multiplier effect is the additional
economic impact created as a result of the
institution’s direct economic impact. Local
companies that provide goods and services
to an institution increase their purchasing by
creating a multiplier.
DIRECT TAX PAYMENTS
Direct tax payments made by an institution to
a unit of government.
INDIRECT AND INDUCED
TAX PAYMENTS
DIRECT EMPLOYMENT
INDIRECT AND INDUCED
EMPLOYMENT
Government revenue that is collected by
governmental units in addition to those paid
directly by an institution, including taxes paid
directly by employees of the institution,
visitors to the institution and vendors who sell
products to the institution.
Total employees based on total jobs.
Indirect employment is the additional jobs
created as a result of the institution’s
economic impact. Local companies that
provide goods and services to an institution
increase their number of employees as
purchasing increases, thus creating an
employment multiplier.
2014 ECONOMIC AND COMMUNITY IMPACT REPORT OF THE UNIVERSITY OF WASHINGTON 26
APPENDIX B: METHODOLOGY
IMPACT ON STATE BUSINESS VOLUME AND GOVERNMENT REVENUE
The University of Washington, its regional campuses, and UW Medicine (hereinafter referred to collectively as
“UW”) are major employers in the state and, as such, major generators of personal income for state residents.
Businesses operating within Washington in the wholesale, retail, service, and manufacturing sectors benefit from
the direct expenditures of the institutions and their faculty, staff, students, and visitors on goods and services.
Additionally, many of these “direct” expenditures are re-circulated in the economy as recipients of the first-round
of income re-spend a portion of this income with other businesses and individuals within Washington.
METHODOLOGY AND DATA UTILIZED FOR THE ESTIMATION OF THE ECONOMIC IMPACT OF
UNIVERSITY OF WASHINGTON
The economic impact of UW was estimated using IMPLAN (IMpact Analysis for PLANing), an econometric modeling
system developed by applied economists at the University of Minnesota and the U.S. Forest Service. The IMPLAN
modeling system has been in use since 1979 and is currently used by over 500 private consulting firms, university
research centers, and government agencies. The IMPLAN modeling system combines the U.S. Bureau of Economic
Analysis’ Input-Output Benchmarks with other data to construct quantitative models of trade flow relationships
between businesses and between businesses and final consumers. From this data, one can examine the effects of
a change in one or several economic activities to predict its effect on a specific state, regional, or local economy
(impact analysis). The IMPLAN input-output accounts capture all monetary market transactions for consumption in
a given time period. The IMPLAN input-output accounts are based on industry survey data collected periodically by
the U.S. BEA and follow a balanced account format recommended by the United Nations.
IMPLAN’s Regional Economic Accounts and the Social Accounting Matrices were used to construct state-level
multipliers, which describe the response of the state economy to a change in demand or production as a result
of the activities and expenditures of the UW. Each industry that produces goods or services generates demand
for other goods and services; and this demand is multiplied through a particular economy until it dissipates
through “leakage” to economies outside the specified area. IMPLAN models discern and calculate leakage from
local, regional, and state economic areas based on workforce configuration, the inputs required by specific types
of businesses, and the availability of both inputs in the economic area. Consequently, economic impacts that
accrue to other regions or states as a consequence of a change in demand are not counted as impacts within the
economic area.
The model accounts for substitution and displacement effects by deflating industry-specific multipliers to levels
well below those recommended by the U.S. Bureau of Economic Analysis. In addition, multipliers are applied only
to personal disposable income to obtain a more realistic estimate of the multiplier effects from increased demand.
Importantly, IMPLAN’s Regional Economic Accounts exclude imports to an economic area, so the calculation of
economic impacts identifies only those impacts specific to the economic impact area; in this case, the state of
Washington. IMPLAN calculates this distinction by applying Regional Purchase Coefficients (RPC) to predict regional
purchases based on an economic area’s particular characteristics. The RPC represents the proportion of goods and
services that will be purchased regionally under normal circumstances, based on the area’s economic characteristics
described in terms of actual trade flows within the area.
MODEL INPUTS AND DATA SOURCES
Model inputs included actual FY14 expenditures provided by UW and UW Medicine.
2014 ECONOMIC AND COMMUNITY IMPACT REPORT OF THE UNIVERSITY OF WASHINGTON 27
APPENDIX C: PROFILE OF STATE OF WASHINGTON ECONOMY
The gross state product of Washington in 2013 was $387.2 billion. The largest sectors in the statewide economy
were service (45.6%), manufacturing (24.5%), and trade (10.1%).
The total civilian employment in the state of Washington for 2013 was 3,833,798. The largest employment sectors
statewide include: service 51.3%, government (16.2%), and trade (13.6%).
2014 ECONOMIC AND COMMUNITY IMPACT REPORT OF THE UNIVERSITY OF WASHINGTON 28
APPENDIX D: ECONOMIC IMPACT BY GEOGRAPHY
UW ECONOMIC IMPACT ON PUGET SOUND
Direct
Total
Indirect/Induced
UW Seattle
$4.8 billion
$5.5 billion
10.3 billion
UW Bothell
$71.4 million
$133.2 million
$204.6 million
UW Tacoma
$60.9 million
$127.9 million
$188.8 million
TOTAL
$5.0 billion
$5.7 billion
$10.7 billion
UW Medicine
$3.3 billion
$3.3 billion
$6.6 billion
Source: Tripp Umbach using IMPLAN results from data obtained through the UW.
UW EMPLOYMENT IMPACT ON PUGET SOUND
(IN JOBS)
Direct
Total
Indirect/Induced
UW Seattle
30,175
36,492
66,667
UW Bothell
539
1,016
1,555
UW Tacoma
487
998
1,485
TOTAL
31,201
38,505
69,706
UW Medicine
17,876
21,499
39,375
Source: Tripp Umbach using IMPLAN results from data obtained through the UW.
UW GOVERNMENT REVENUE IMPACT ON PUGET SOUND
Direct
Indirect/Induced
Total
UW Seattle
$110.4 million
$303.0 million
$413.4 million
UW Bothell
$2.1 million
$8.1 million
$10.2 million
UW Tacoma
$1.8 million
$8.0 million
$9.8 million
TOTAL
$114.3 million
$319.2 million
$433.5 million
UW Medicine
$63.5 million
$179.1 million
$242.6 million
Source: Tripp Umbach using IMPLAN results from data obtained through the UW.
2014 ECONOMIC AND COMMUNITY IMPACT REPORT OF THE UNIVERSITY OF WASHINGTON 29
UW SEATTLE IMPACT ON CITY OF SEATTLE
Direct
Indirect/Induced
Total
Economic Impact
$2.8 billion
$3.2 billion
$6.0 billion
Employment Impact
16,865 jobs
21,376 jobs
38,241 jobs
Govt. Revenue Impact (state and local)
$74.2 million
$198.3 million
$272.5 million
UW Medicine
UW Medicine
UW Medicine
$1.9 billion
9,991 jobs
$44.3 million
$2.1 billion
12,810 jobs
$119.8 million
$3.8 billion
22,801 jobs
$164.1 million
Source: Tripp Umbach using IMPLAN results from data obtained through the UW.
UW BOTHELL IMPACT ON CITY OF BOTHELL
Direct
Indirect/Induced
Total
Economic Impact
$44.8 million
$80.7 million
$125.5 million
Employment Impact
324 jobs
595 jobs
919 jobs
Government Revenue Impact
(state and local)
$1.5 million
$5.2 million
$6.7 million
Source: Tripp Umbach using IMPLAN results from data obtained through the UW.
UW TACOMA IMPACT ON CITY OF TACOMA
Direct
Indirect/Induced
Total
Economic Impact
$37.3 million
$75.2 million
$112.5 million
Employment Impact
288 jobs
567 jobs
855 jobs
Government Revenue Impact
(state and local)
$1.2 million
$4.9 million
$6.1 million
Source: Tripp Umbach using IMPLAN results from data obtained through the UW.
2014 ECONOMIC AND COMMUNITY IMPACT REPORT OF THE UNIVERSITY OF WASHINGTON 30
APPENDIX E: FAQ’S REGARDING ECONOMIC IMPACT ASSESSMENT
WHAT IS ECONOMIC IMPACT?
Economic impact begins when an organization spends money. Economic impact studies measure the direct
economic impact of an organization’s spending, plus additional indirect spending in the economy as a result of
direct spending. Economic impact has nothing to do with dollars collected by institutions, their profitability, or even
their sustainability, since all operating organizations have a positive economic impact when they spend money and
attract spending from outside sources.
Direct economic impact measures the dollars that are generated within Washington due to the presence of the
UW. This includes not only spending on goods and services with a variety of vendors within the state, and the
spending of its employees and visitors, but also the business volume generated by businesses within Washington
that benefit from spending by UW. It is important to remember that not all dollars spent by the UW stay in
Washington. Dollars that “leak” out of the state in the form of purchases from out-of-state vendors are not
included in the economic impact that the UW has on the state of Washington.
The total economic impact includes the “multiplier” of spending from companies that do business with the UW.
Support businesses may include lodging establishments, restaurants, construction firms, vendors, temporary
agencies, etc. Spending multipliers attempt to estimate the ripple effect in the state economy where the spending
occurs. For example: Spending by the UW with local vendors provides these vendors with additional dollars that
they re-spend in the local economy, causing a “multiplier effect.”
WHAT IS THE MULTIPLIER EFFECT?
MANUFACTURING
OPX
VISITOR
SPENDING
CAPX
NUMBER OF
EMPLOYEES
PAY &
BENEFITS
OTHER
TOTAL ECONOMIC IMPACT
INDUCED
(INCOME)
CONSTRUCTION
DATA
COLLECTION
HEALTHCARE
OTHER SECTORS
INDIRECT
(SUPPLY
CHAIN)
IMPLAN RESULTS &
OTHER ANALYSIS
VALUE
ADDED
(GDP)
WAGES
&
COMP
JOBS
TAXES
DIRECT
IMPORT
LEAKAGES
2014 ECONOMIC AND COMMUNITY IMPACT REPORT OF THE UNIVERSITY OF WASHINGTON
31
Multipliers are a numeric way of describing the secondary impacts stemming from the operations of an
organization. For example, an employment multiplier of 1.8 would suggest that for every 10 employees hired in
the given industry, eight additional jobs would be created in other industries, such that 18 total jobs would be
added to the given economic region. The multipliers used in this study range from 1.8 to 2.0.
The multiplier model is derived mathematically using the input-output model and Social Accounting formats.
The Social Accounting System provides the framework for the predictive Multiplier Model used in economic
impact studies. Purchases for final use drive the model. Industries that produce goods and services for consumer
consumption must purchase products, raw materials and services from other companies to create their product.
These vendors must also procure goods and services. This cycle continues until all the money is leaked from the
region’s economy. There are three types of effects measured with a multiplier: the direct, the indirect and the
induced effects. The direct effect is the known or predicted change in the local economy that is to be studied.
The indirect effect is the business-to-business transactions required to satisfy the direct effect. Finally, the induced
effect is derived from local spending on goods and services by people working to satisfy the direct and indirect
effects.
• Direct effects take place only in the industry immediately being studied.
• Indirect effects concern inter-industry transactions: because the the UW is in business, it has a demand for
locally produced materials needed to operate.
• Induced effects measure the effects of the changes in household income: employees of the UW and suppliers
purchase from local retailers and restaurants.
• Total Economic Impacts are the total changes to the original economy as the result of the operations of the
UW. i.e., Direct effects + Indirect effects + Induced effects = Total economic impacts.
WHAT METHODOLOGY WAS USED IN THIS STUDY?
IMPLAN (IMpact analysis for PLANning) data and software. Using classic input-output analysis in combination
with regional specific Social Accounting Matrices and Multiplier Models, IMPLAN provides a highly accurate and
adaptable model for its users. The IMPLAN database contains county, state, zip code, and federal economic
statistics which are specialized by region, not estimated from national averages and can be used to measure the
effect on a regional or local economy of a given change or event in the economy’s activity.
This methodology is a change from the last economic impact study completed by Tripp Umbach for the UW. There
have been shifts in impact as a result of the methodology change.
WHAT IS EMPLOYMENT IMPACT?
Employment impact measures the direct employment (employees, staff, faculty, administration) plus additional
employment created in the economy as a result of the operations of the UW.
Indirect and Induced employment impact refers to other employees throughout the region that exist because of
the University’s economic impact. In other words, jobs related to the population – city services (police, fire, EMS,
etc.), employees at local hotels and restaurants, clerks at local retail establishments, residents employed by vendors
used by the UW.
2014 ECONOMIC AND COMMUNITY IMPACT REPORT OF THE UNIVERSITY OF WASHINGTON 32
WHAT IS THE DIFFERENCE BETWEEN DIRECT AND INDIRECT TAXES?
Direct tax dollars include sales taxes and net corporate income taxes paid directly by the institution to the state,
while indirect taxes include taxes paid to the state by vendors that do business with the UW and individuals.
IS THIS A ONE-TIME IMPACT OR DOES THE IMPACT REPEAT EACH YEAR?
The results presented in the University of Washington economic impact study are generated on an annual basis.
The economic impact in future years can either be higher or lower based on number of employees, students,
capital expansion, increases in external research, and state appropriations.
WHAT ARE TRIPP UMBACH’S QUALIFICATIONS TO PERFORM AN ECONOMIC IMPACT STUDY
FOR THE UNIVERSITY OF WASHINGTON?
Tripp Umbach is the national leader in providing economic impact analysis to leading healthcare organizations,
universities and academic medical centers. We have completed more than 150 economic impact studies over
the past 20 years for clients such as: the University of Minnesota, The Ohio State University, the University of
Pittsburgh, the University of Washington, The University of Alabama at Birmingham (UAB), the Cleveland Clinic,
the University of Florida Health Shands Hospital, the University of North Carolina Hospitals, the University of
Pittsburgh Health System, and The Ohio State University Medical Center.
2014 ECONOMIC AND COMMUNITY IMPACT REPORT OF THE UNIVERSITY OF WASHINGTON 33